Auckland City Council's 10-year Plan 2009-2019 - Auckland Transport

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ISBN - 978-1-877362-26-2 SET 978-1-877362-29-3

Volume 1: Our vision and strategic direction About this plan Auckland City Council’s 10-year Plan 2009-2019 1 About this plan This 10-year plan prioritises projects that will help achieve future goals for the city. Under the Local Government Act 2002, Auckland City Council, like all other councils, must produce a 10-year plan every three years showing what the council does and how it will work towards achieving what the community wants for the future. These are called community outcomes (see the appendices in volume 1 for more information).

Auckland City Council’s 10-year Plan 2009-2019 is our third 10-year plan and it is published in three volumes. What’s in each volume There are three volumes:

Volume 1: Our vision and strategic direction

Volume 2: Our strategies and activities

Volume 3: Policies and statements. The 10-year plan is available at www.aucklandcity.govt.nz/tenyearplan or see page 83 of volume 1 for how to obtain a printed copy. As a requirement of the Local Government Act 2002, this document has been audited. Audit New Zealand’s audit report can be found in the appendices to volume 1. The financial figures found in the text of volumes 1, 2 and 3 and any projections included in the document have been inflated using the inflation indicators as detailed under the Significant assumptions section in volume 3. Volume 1: Our vision and strategic direction This volume outlines our vision and strategic direction for the city. It explains where we are heading and the key initiatives we could undertake in the next 10 years to help us achieve our vision. It describes how we are keeping our promise on balancing the importance of affordable rates with delivering the essential progress needed for the city to grow and prosper. This plan has been put together in very uncertain economic times with a deepening global recession and a change in Auckland’s governance structure. It will be revised over time as economic conditions alter and regional governance is implemented. Volume 2: Our strategies and activities In volume 2 you’ll find detailed information on what Auckland City Council does and how it plans to contribute to achieving community outcomes. These details are given under each of the council’s seven strategies. Here you can read about our plans for the next 10 years, how much we expect them to cost and how we’ll measure our progress. This volume includes information on how we’ll finance planned capital and operating expenditure.

Volume 3: Policies and statements Volume 3 includes assumptions, financial statements and financial and funding policies. These policies are required for us to run an efficient organisation that is prudent in its financial management and transparent in what it does. The Local Government Act 2002 also requires us to have them. We have amended some of these policies, such as revenue and finance, treasury management, development contributions, and our policy on significance to bring them up-to-date.

Part 1: Executive summary Auckland City Council’s 10-year Plan 2009-2019 4 Mayor’s message The citizens of Auckland gave this council the opportunity to lead on the commitment of affordable progress. Our promise was to keep the average increase in rates to the council’s level of inflation.

Our focus is on giving people value for money. There is no time more important to keep this promise than now. These are difficult times with an uncertain future. In plain language, this means that families are reconsidering their budgets, and businesses are laying off staff and are fixated on costs. At Auckland City Council, we are clearly going to take a value for money approach to all of our expenditure, so that we can deliver affordable progress across the city. Of course, this means that some projects will be delayed and others may be shelved. But it is about ordering priorities and balancing best benefits and value for the city.

While we are making substantial savings, resulting in a reduction of capital spend over the next 10 years from $5.3 billion to $3.4 billion, we are also spending our biggest ever amount on capital projects in a single year– about $480 million next year – and building and acquiring $1.9 billion of new assets for the city over the next 10 years. A key project will be the redevelopment of Queens Wharf. It has long been the wish of our citizens to have greater access to the waterfront. We now have the opportunity to develop this historic location, creating a venue for activities to celebrate the Rugby World Cup in 2011, and also to ensure a legacy benefit for the people of Auckland and the many visitors to our city.

We are also committed to being an efficient organisation and have reviewed all our operating costs. We have an established record of achieving one-off and ongoing savings and have included total savings of more than $202 million in operating costs. These savings have been achieved by setting efficiency targets in our 10-year plan. In the 2009/2010 year we will save $4.6 million, with savings rising to about $28 million in 2018/2019.

We will also have a reduced level of borrowings compared with the levels projected in the 2006-2016 plan. This is a result of the pared back capital programme. The council’s borrowings will peak at $1.4 billion (2017/2018) compared with a peak of $1.7 billion projected in the previous amended plan. We have had to take a hard look at all of our activities over the next decade and what was promised by the last council. It is a priority for this council to do the right things, and to do things right for the city. We have had to make some difficult decisions, but that is what is required at this time.

The next 18 months will see significant change in Auckland’s governance as the unitary Auckland Council is established. During this period of change we will continue providing value-for-money services each day and our capital programme will continue to deliver affordable progress for the people of Auckland city.

Our 10-year plan will provide Auckland City Council’s input into the new council and their 10-year plan. I am confident that as we move into the transition, our facilities, assets and services will be well positioned to ensure that the new council serves the people of Auckland well as we enter a period of unprecedented change. Hon. John Banks Mayor – Auckland city

Part 1: Executive summary Auckland City Council’s 10-year Plan 2009-2019 5 Chief executive’s message During the next 10 years, the council will continue to improve Auckland city as a great place to live, visit, work and do business.

We want to invest in the future of our communities and maintain the standards of our day-to-day services. But in the current financial climate the challenge we face is stark: how do we find the money to do everything we want to do? The council’s last 10-year plan (2006-2016) doubled the rate of historic capital investment, funding it through rates increases above the council’s rate of inflation. The council remains committed to achieving its vision of Auckland as First City of the Pacific. To keep rates increases at the council’s rate of inflation, the funding for some capital projects needs to be reduced, deferred or not proceed during this 10-year plan.

Despite this, capital investment remains high by historical standards. Next year the organisation plans to invest about $480 million in capital works, our largest programme ever. During the 10-year plan, investment will average about $340 million each year. We will continue to maintain the many assets we already have, and are reviewing operating expenditure and seeking more value when purchasing goods and services. Some of the key projects planned for the next 10 years include:

completing the Auckland Art Gallery and Aotea Square, and completing the Central Connector to give quicker and more reliable bus travel between the CBD and Newmarket

continuing opening up the waterfront for all Aucklanders to enjoy by providing public spaces on Wynyard Point in partnership with Auckland Regional Holdings and contributing to the costs of redeveloping Queens Wharf for public space, developing the Marine Events Precinct centre, and Te Wero bridge.

improving the transport network and helping to revitalise the Tamaki area. Some of these initiatives include diverting traffic away from the Panmure roundabout by creating a new two-lane road connecting Mt Wellington Highway to Merton Road, providing additional bus lanes on Lagoon Drive and Ellerslie Panmure Highway, walking and cycling facilities, and developing land around the existing Panmure railway station

installing new stormwater pipes, replacing old footpaths and improving the local road network

investing in a range of projects for Rugby World Cup 2011 to make it an event that all Aucklanders can be proud of, be involved in and leave a legacy for Aucklanders to enjoy for many years to come The Government’s decision to establish a single unitary council for the region in November 2010 is a positive step for Auckland and one that the council advocated in its submission to the Royal Commission. Our focus over the next 16 months is to work in partnership with the Auckland Transition Agency to successfully transfer the council’s services and assets into the Auckland Council. We will continue to lift our customer service in providing these services to you on a daily basis and ensure we provide value for money by continuing to generate savings from efficiencies.

In November 2010, our 10-year plan, and the budgets within it, will be handed over to the new Auckland Council. The council wishes to hand over to those elected representatives a plan that balances the desire to make Auckland a great place, while keeping rates affordable. I am confident it will greatly assist the new council in forming a single 10-year plan for the region in 2012. David Rankin Chief executive – Auckland City Council

Part 1: Executive summary Auckland City Council’s 10-year Plan 2009-2019 6 Having your say Auckland City Council’s 10-year plan 2009-2019 provides details of the investment we will make in day-to-day services and projects across the city, and the context in which we developed this plan.

You have previously told us what is important to you through the community outcomes process, and through a range of research and consultation we have carried out over the last three years. Over the month in which we encouraged you to have your say on this plan, you responded with a total of 428 submissions. During this time we also held 14 community and stakeholder forums and conducted an online survey to assist us in the decision-making process.

In developing the draft plan, we considered the key issues facing the city such as the need to improve productivity, population growth and the increasing pressure on infrastructure. The rapidly deteriorating economic situation and deepening global recession were the overriding factors. The council has promised to balance the importance of keeping rates affordable with delivering the essential progress needed for the city to grow and prosper. The focus is on giving people value for money. Since releasing the draft plan for consultation, we have reviewed our financial forecasts in light of more up-to-date information and assumptions in the changing economic and business climate.

We have made good progress on identifying where we can make the specific savings needed to achieve the targets included in the draft plan. We plan to identify further potential savings which would help us to deliver projects and services to you in a more efficient manner. This has resulted in a change to the timing and cost of some projects and also to changes to some operating costs. The net impact of the changes is neutral and has no impact on the average rate increase of 2 per cent that was proposed in the draft plan for 2009/2010. See the appendices for more detail. Immediately before the council adopted this 10-year plan, central government and the Auckland Regional Council reached an agreement to purchase Queens Wharf from Ports of Auckland for $20 million each.

This presented the council with a significant opportunity to bring forward the plans for the development of the wharf and a cruise-ship terminal. The draft plan provided for the development of the wharf at the end of the 10-year planning period. It is anticipated that the wharf will now be open for public use in time for Rugby World Cup 2011.

Development of Auckland’s CBD waterfront is a key aspect of the council’s long-term strategic planning, and the location of Queens Wharf between Queen Street and the harbour makes this wharf a key part of this planning. Locating a cruise-ship terminal in the CBD brings huge economic benefits to the region as passengers embark and disembark and the ships are reprovisioned. Queens Wharf provides a unique opportunity to develop a high-quality public facility, leverage the benefits of Rugby World Cup 2011, and provide a legacy for future generations.

The project budget is currently $84 million (in today’s dollars) $35 million of which is already budgeted for in the plan.

It is anticipated there will also be a contribution of around $30 million from external sources. Affordable progress is defined as keeping rates at or below the council’s rate of inflation. Developing Queens Wharf as public open space and as a terminal provides assets that will benefit the city for decades to come. The council’s share of the development cost will be funded from debt enabling the cost to be borne by future generations, not just current ratepayers.

The once-in-a-lifetime opportunity we have to develop Queens Wharf and contribute to Rugby World Cup 2011 means the rate increase in 2011/2012 will be greater than the council’s inflation. The increase in 2012/2013 is forecast to be below inflation as the Rugby World Cup funding is required for one year only. Over the full 10 years, our rate increase is in line with inflation (an average inflation rate of 2.62 per cent and an average annual rate increase of 2.68 per cent). Your feedback, the work we have undertaken to update our assumptions and forecasts to reflect the changed economic climate, the opportunity that has recently arisen with respect to Queens Wharf, and the start of the transition to the new Auckland local governance structure as described below, have all been considerations in this final 10-year plan.

We believe this is a plan that will take Auckland forward positively into the future.

For more detail on how we consulted with you see the consultation report in the appendices of this volume.

Part 1: Executive summary Auckland City Council’s 10-year Plan 2009-2019 7 Auckland Transition Agency While we were consulting you on this 10-year plan, the government made its initial decisions on the recommendations of the Royal Commission on Auckland’s governance. As a result, this plan must now be confirmed by the Auckland Transition Agency before it comes into effect. The plan will be important information and a starting framework for the new Auckland Council and will help it develop a single 10-year plan for the region.

During the transition to the new governance arrangements which include the establishment of local boards and a new Auckland Council, we remain committed to delivering our strategic objectives and to focusing on providing day-to-day services and improving customer service. We will also assist the Auckland Transition Agency to make the change on 1 November 2010 as smooth as possible. This includes advising and seeking approval on significant decisions, and approving the adoption of this 10-year plan. It is essential that we continue to plan for the coming year and set the rates accordingly. Working with the transition agency may incur additional costs for Auckland City Council.

There is no provision for these costs in this plan.

Auckland: a global city Auckland city’s enviable lifestyle, and its place as New Zealand’s economic centre and gateway to the world, positions it as a global city. It consistently ranks among the top five cities in international lifestyle surveys. The natural landscape gives the city its unique identity and contributes to our pride in Auckland and sense of belonging. Our neighbourhoods and centres have their own special characteristics that make us feel at home and contribute to the strength of our communities.

The waterfront is a superb asset near New Zealand’s main business centre, the Auckland CBD.

Auckland’s city centre offers career, business, investment, education, living and leisure opportunities unique in New Zealand. Our profile as an international city attracts tourists, migrants and businesses, and enables us to experience world-class events. We have an enormous range of arts, culture and sporting experiences available to us. We want to build on these strengths to achieve our vision of being First City of the Pacific where people choose to live, do business in or visit. Over the next 10 years, we will invest $3.4 billion in the city, about half of which will be allocated to building and acquiring new assets and the other half to renewing existing assets.

Through this investment, we will continue to focus on major projects that take us closer to our vision, such as opening up access to the waterfront, redeveloping Auckland Art Gallery, preparing the city to successfully host Rugby World Cup 2011, revitalising our network of streets and open spaces – including a new civic square for the city centre, and an internationally recognised science and technology park at Tamaki that will encourage business innovation.

We will continue to provide day-to-day services for Aucklanders, such as recycling, footpath upgrades, street cleaning, community facilities and maintaining parks and open spaces. A city that works Auckland city’s population continues to grow rapidly; faster than the rest of New Zealand. This growth requires long-term planning for the continued delivery of critical day-to-day services that make your lives easier, as well as planning for infrastructure and land use. When planning for future population and economic growth, we need to ensure that the actions we take result in a high-quality city in all respects.

We must ensure that we have significant land available for businesses, parks and open spaces. There needs to be a variety of housing styles for residents to choose from and transport choices for residents and businesses alike. The increasing diversity of our communities means we must support community activities in ways that best meet the community’s needs and builds on their strengths. Good urban design ensures that we create a city that not only looks good but works for people who use it and live here.

For Auckland to become a great city, we must be proactive and plan for future development and land use. We are working on our Future Planning Framework, which will set the right context for providing quality long-term sustainable development of the city and for developing the reviewed isthmus district plan rules. The district plan is our main regulatory tool for managing land use.

Part 1: Executive summary Auckland City Council’s 10-year Plan 2009-2019 8 Affordable progress in challenging economic times The council has promised to balance the importance of keeping rates affordable with delivering the essential progress needed for the city to grow and prosper.

The focus is on giving people value for money. We have put together a budget with priorities for the next 10 years at a time when the world is experiencing its most severe economic crisis in decades and New Zealand has entered a recession of uncertain depth and duration. This economic climate makes a commitment to affordability more relevant than ever. How affordable progress will affect your rates We have defined “affordable” as keeping the average increase in rates at or below the council’s rate of inflation. This rate of inflation refers to the increase in costs that the council faces to fund the current activities it provides at existing levels of service, projected at 2.5 per cent for 2009/2010.

For 2009/2010, we have set an average increase in rates of 2 per cent. This excludes the impact of the CBD and Mainstreet targeted rates and is possible as there is no budget set for staff salary increases. Note that the council’s rate of inflation may differ from inflation calculated under the Consumer Price Index and by other councils with different ranges of goods and services purchased.

It is important to note that this is an average rates increase of 2 per cent and not a 2 per cent rates increase for all ratepayers. Your rates increase may be greater or less than 2 per cent, depending on the recent property revaluations, the increase in the uniform annual general charge (UAGC), the application of the next step in the rates adjustment between residential and non-residential ratepayers (known as the long-term general rate differential strategy), and the council’s targeted rates. In the draft consultation plan, we disclosed contributing $6.9 million to Rugby World Cup 2011 activities in the city.

Since then an opportunity has arisen to open up Queens Wharf for public use in time for Rugby World Cup 2011, and to construct a cruise-ship terminal. These significant projects will require a rate increase greater than the council’s rate of inflation for 2011/2012. From 2012/2013, rates increases are projected to be lower than the council’s cost of inflation.

The effects of the uniform annual general charge and value-based rates The total rates revenue required for the council to fund its services is separated into general rates (the UAGC and value-based rates) and targeted rates (refuse collection, Mainstreet organisations, CBD for residential and non-residential properties, and the recycling targeted rate for additional services). This year, the council has increased the UAGC from $162 to $250 per household. As this is a fixed charge per household, the UAGC increase will have a higher percentage impact on lower value properties than on higher value properties.

The UAGC provides a more equitable distribution of some costs as it reflects the fact that services received by individual households may be similar, irrespective of the value of the property.

Uniform charges include the UAGC, refuse collection targeted rate and the CBD targeted rate for residential units in the CBD. The Local Government (Rating) Act 2002 allows local authorities to set up to 30 per cent of a council's rates take as uniform charges. The change means about 16.8 per cent of the council's rates revenue will be collected from uniform charges. Auckland City Council’s uniform charges are lower than those of other councils within the Auckland region. The balance of the general rates collection after the UAGC is made up from rates based on the value of your property. See the appendices to this volume for the impact of rates-related changes on sample properties.

All Auckland city properties received new annual, land and capital values in October 2008 as part of a three-yearly revaluation cycle. The new values will be used to calculate the rates from 2009/2010 to 2012/2013. The council does not generate any additional revenue through the property revaluation process. Instead, the revaluations shift the distribution of rates between ratepayers, depending on how the value of their property changes relative to the city-wide average.

Part 1: Executive summary Auckland City Council’s 10-year Plan 2009-2019 9 Rates adjustment between residential and non-residential ratepayers Auckland City Council has a long-standing policy of gradually reducing the imbalance in general rates paid by residential and non-residential ratepayers. Historically, non-residential ratepayers have paid a significantly higher proportion than residential ratepayers. This transfer will have an impact on the rates you pay. See the long-term differential strategy in the funding impact statement in volume 3.

Metro Water Ltd charitable receipts Under the arrangement by which charitable receipts are received from Metro Water Ltd, the council is restricted to applying these funds to stormwater capital expenditure and other charitable purposes.

With the reduction in the council’s rate of inflation we have revisited our assumptions around the levels of payment and final dates for the charitable receipts programme. We are assuming there will be one final charitable receipt in the 2009/2010 year and then nothing for the rest of the plan period (Metro Water Ltd makes the payment to the council the year after profit to fund it is earned).

Auckland’s global and local context Planning for the city’s future takes place in the context of a constantly changing external environment. We need to be able to respond to issues such as increasing global competition and the worldwide economic turmoil as a result of the recession. Major economies around the world are now entering recession. Despite significant attempts by governments to support their banking systems and stimulate their economies, there is significant uncertainty about the depth and duration of the recession.

The impacts of the global economic crisis are now clearly being felt in Auckland city.

As credit has become more constrained, confidence and investment intentions have dropped to record low levels among businesses in the city and unemployment levels have continued to rise. Demand for goods and services is contracting at both a global and local level which is having an impact on a broad range of economic sectors in which Auckland city has strengths. In addition to these change to the external environment, we must still be able to respond to the ongoing pressures of urban growth, government initiatives with respect to climate change, and the changes planned for Auckland’s governance structures.

Without doubt Auckland city is a great place to live, and we consistently score highly on international quality of life surveys. Our economic performance, however, has not been as good, with our GDP per capita (or income levels) slipping well below that of other international cities. Lifting productivity is key to residents achieving per capita incomes comparable to those living in competitor cities. This requires investment in skills, technology, research and infrastructure. Our economic challenge is compounded by ever increasing global competition for talent. As the baby boomer generation ages and the growth in working-age populations in the developed world slows, cities will increasingly compete for educated, skilled and younger workers.

Auckland city continues to face the opportunities and challenges associated with a rapidly growing population characterised by high turnover and increasing diversity. A growing population is placing more pressure on our transport system, housing affordability and social services. Auckland’s future development needs to be sustainable, based on long-term economic growth, social inclusion and an environment that is valued and protected. What happens in Auckland city is very much influenced by central government policy, whether this is taxation, migration, social policy or spending on transport infrastructure.

Since the government was elected in November 2008, it has proposed reforms of some major pieces of legislation affecting local government. These include the Resource Management Act 2002, the Local Government Act 2002, the Building Act 2004 and the Affordable Housing: Enabling Territorial Authorities Act 2008. It has signalled a greater role for central government in infrastructure planning and funding. Auckland’s future governance arrangements In October 2007, a Royal Commission was established by the government to make recommendations on Auckland’s governance arrangements. Following receipt of the Royal Commission report, the government released its decisions on Auckland’s governance arrangements in April 2009.

Part 1: Executive summary Auckland City Council’s 10-year Plan 2009-2019 10 The key decisions include one unitary Auckland Council since implemented by legislation, and propose approximately 20 to 30 local boards across the region, one mayor for Auckland elected at large by the region's residents and ratepayers, and 20 councillors to sit on the Auckland Council (eight elected at large and 12 elected from wards). The new structure will be in place for the 2010 local government elections. Central government has asked the Local Government Commission to determine the final number of local boards, and the boundaries of the Auckland Council wards and local boards.

Central government has already decided that the communities of Great Barrier and Waiheke islands will have local board representation.

The government’s decision to establish a single unitary council for the region is a positive step for Auckland, making for stronger regional leadership and direction than our current governance arrangements. Auckland City Council advocated for this in its submission to the Royal Commission. As part of our submission process, we conducted research with ratepayers and businesses which reaffirmed the importance you place on being able to access local government decision-makers at a community and neighbourhood level. The second tier of governance in the new governance model comprising local boards needs to allow for local decision-making and accountability.

The governance change is on a scale never seen before in local government in New Zealand and has an ambitious implementation timeframe. On 1 November 2010, the new Auckland Council will be in place and the Auckland Regional Council and the seven territorial authorities (including Auckland City Council) will be dissolved. The change presents many opportunities for the region. In May, the government introduced two bills to enable the transition to the new governance arrangements. The first bill has already passed into law as the Local Government (Tamaki Makaurau Reorganisation) Act 2009. It has established the Auckland Transition Agency which will be responsible for rationalisation and transition to the new governance arrangements.

The act constrains the decision-making powers of existing Auckland councils and their subsidiaries during this transition period. The second bill, Local Government (Auckland Council) Bill, when enacted will provide for the high level framework for the structure of the Auckland Council and local boards, including their high level functions. It will empower the Local Government Commission to determine the boundaries of the wards of the Auckland Council and the local boards, and the boards and their membership; and provide for the integration of Auckland’s water infrastructure. The bill will proceed through a select committee process ending in September this year.

The third bill will provide for the ongoing governance structure, functions, roles and powers of Auckland Council and local boards, and detailed legislative framework for governance arrangements. The Auckland Transition Agency will pave the way for establishing the new council. Our priority over the next 16 months is to remain focused on providing day-to-day services and to continue to improve our customer service. Another priority is to deliver on projects contained in this plan that we said we would do in 2009/2010. Preparing a 10-year plan every three years is essential as it enables us to plan for the coming year and the longer term, and set the rates accordingly.

It is also a statutory requirement. Our 10-year plan, and the budgets and financial information within it, will be invaluable information for the new Auckland Council and help it form a single 10-year plan for the region. For more information on the governance changes, see www.auckland.govt.nz Strategic approach The budget and priorities for the council and city over the next 10 years have been developed within the framework of our seven strategic areas as described below. These strategic areas are designed to guide us towards achieving our vision of Auckland as First City of the Pacific. They have been influenced by the outcomes that you have told us are important to you, and by our understanding of the issues and challenges facing the city.

The strategies provide the overall direction for the council and are underpinned by our urban design-led approach. This approach to planning and landscape engineering recognises the importance of our built environment in retaining Auckland’s international reputation for quality of life.

Economic development strategy We will continue to make sure we create an environment and infrastructure that enables economic growth, and delivers jobs and an improved standard of living.

Part 1: Executive summary Auckland City Council’s 10-year Plan 2009-2019 11 Lifestyle choices strategy We will continue to ensure that Auckland is a dynamic, exciting and distinctive city, and encourage and provide recreational, arts, sports and cultural activities including world-class programmes and events. Quality built environment strategy We will continue to manage our city’s growth, ensure high-quality urban development design that retains our city’s character and heritage, create vibrant neighbourhoods and invest in a world-class central business district and waterfront.

Quality natural environment strategy We will continue to work to protect and improve the quality of our unique landscape, ecology and biodiversity, so we can enjoy a clean, healthy and sustainable city with world-class beaches and parks. Strong and healthy communities strategy We will continue to provide safe communities, places and events for Aucklanders to have fun and learn. Transport choices strategy We will continue to provide transport choices that result in a connected city, in particular a sustainable transport network that makes it convenient for business, enables people to get around safely and efficiently, and minimises negative effects on the environment.

Efficient, capable and user-friendly council strategy We will work to ensure that you have confidence in our leadership, experience quality customer service, and appreciate the value for money that the council delivers to Auckland. Investment in the city – reviewing our spending The previous 10-year plan (2006-2016), amended through the 2008/2009 annual plan, includes significant investment in projects and initiatives aimed at making progress towards our vision for the city and delivering a range of benefits for you. This investment is a key driver of increases in rates. In the 2006-2016 10-year plan, rates were projected to increase by more than the council’s forecasted rate of inflation.

The 2008/2009 annual plan signalled rate increases that were on average 6 per cent more than the council’s forecasted rate of inflation for 2009/2010 to 2011/2012.

Capital projects (which involve either buying or building assets for the city) have many related and ongoing costs on top of the initial project costs. These include interest, depreciation and operating costs, all of which must be taken into account and funded by rates. Deferring capital projects provides the greatest savings overall, enabling us to deliver affordable progress. In order to meet our commitment to affordable progress, we carried out a review of all our planned capital investment and changed the level of investment in some projects and/or the speed at which they will be delivered in our 2009-2019 plan.

This plan still represents an extensive capital works programme, with spending of $3.4 billion on capital works over the next 10 years, including building and acquiring $1.9 billion of new assets for the city. Next year alone we will spend about $480 million − the biggest single-year expenditure in the council’s history. While capital investment is the main driver of rates increases, we have reviewed, and will continue to review, all our operating costs. We have identified total savings targets of over $202 million in this area. The targets start at $4.6 million for the 2009/2010 year, increasing gradually over the 10-year period to about $28 million in the 2018/2019 year.

We are making good progress in identifying specific savings needed to achieve these targets.

Part 1: Executive summary Auckland City Council’s 10-year Plan 2009-2019 12 Meeting our obligations and taking care of assets The role of the council is to promote the social, economic, environmental and cultural wellbeing of our communities. Since it is not possible to do everything, we have focused on those projects and initiatives that will provide the greatest benefit to you. We must ensure that we meet our statutory and contractual obligations. We will take appropriate care of our assets, and make sensible business decisions on those things that may require some investment up front, but will save money in the longer term.

Setting priorities for discretionary investment In developing this plan, we ensured that we first met our obligations, as described above. All other investment was considered to be discretionary. This means that, while the city may have benefited from the investment, it was necessary to reconsider whether or not the project or initiative was still a priority for the next 10 years. If a priority, we considered whether we needed to either slow down the speed at which we initially planned to deliver the project or initiative, or to decrease the level of investment in the project overall. While the seven strategies describe how we will achieve the council’s vision and aspirations for the city, the council also identified a set of strategic goals that were used to provide further guidance in prioritising this discretionary expenditure.

Our plan includes projects or initiatives that meet the following strategic goals.

Facilitate the economic development of Auckland city by promoting town centres as places to live and work, providing infrastructure that supports economic growth, and supporting events and tourism.

Care for what makes us special and distinctive as a city, including volcanoes, beaches, heritage, parks, harbours, and waterfronts.

Keep our city clean, safe and well maintained so that people are proud of their local neighbourhood and town centres.

Be a lively city, offering a variety of lifestyles and a vibrant arts, entertainment, events and sports sector.

Support and encourage an inclusive, healthy and involved community by developing effective relationships with government, business and voluntary agencies.

Ensure it is easy to do business with the council by having processes that are fast and simple. Key projects and initiatives We will invest $3.4 billion in capital projects in the city over the next 10 years. Around half of this will be spent on maintaining existing assets and half on acquiring new assets.

Major projects include:

redevelopment of libraries on Waiheke Island (combined with service centre), Otahuhu and Mt Roskill for about $15 million, and an investment of $42 million in refreshing library collections across the city

residents and visitors will be able to visit, play in and enjoy $77 million of new and developed parks and reserves including Grey Lynn Park and walkways on Great Barrier Island, and a further $70 million will be invested in upgrading existing parks and playgrounds

visitors will be able to see New Zealand land and sea creatures with $15 million invested in the Te Wao Nui precinct at Auckland Zoo

investment of about $31 million (around $22 million over the period of this plan) in transport and infrastructure upgrades around Eden Park and other citywide projects in preparation for hosting Rugby World Cup 2011 making it an event that all Aucklanders can be proud of, be involved in and benefit from long-term, and that will demonstrate to the world our ability to stage successful, safe and spectacular major global events

a $381 million investment during the next 10 years that continues our portion of the Auckland-Manukau Eastern Transport Initiative to help support business and residential growth planned for Glen Innes, Panmure, Mt Wellington and Sylvia Park, by improving roads, bus lanes, walking and cycling facilities and enabling freight and business vehicles to move more easily with good connections to ports, airports and motorways

the waterfront will continue to be opened up for all Aucklanders to enjoy with an investment of about $275 million, which includes development of the marine events precinct and Te Wero Bridge; and development of an international cruise-ship terminal and open Queens Wharf to the public currently budgeted at $84 million

people in Auckland will be able to enjoy more of the nation's biggest art collection and dedicated education, child and family spaces at the Auckland Art Gallery after a multi-million dollar restoration and expansion. The council is committing $121 million towards the development, about $69 million will be incurred over the period of this plan

Aotea Square is being developed as a modern venue for major public events and everyday activity, driven by the essential repairs required to the Civic car park roof underneath the square. The total project investment, including the car park roof and alterations to the front of the Aotea Centre is $82 million ($61 million within the period of this plan)

Auckland will have a new performing arts venue, with the council contributing over $8.7 million towards Q Theatre

the city’s unique volcanic landscape will continue to be protected and conserved with $6 million to improve the management and facilities of the cones

the Onehunga foreshore will be developed into a high-quality open space and coastal environment with a $10 million investment, and a further $10 million will go towards city beach restoration projects which will provide better and easier access in coastal areas

we will spend $253 million to continue developing our stormwater infrastructure, which aims to alleviate flooding and improve the quality of stormwater that drains into the sea.

Auckland City Council has significant existing assets that must be managed to achieve the best value for ratepayers. The investment over the next 10 years will ensure that we both add to the value of our assets and take appropriate care of them for future generations. Asset renewals represent around half of the capital investment budget. Investing in asset renewal during the next 10 years will ensure that:

walking will be safer and easier with $240 million invested to maintain the safety and standards of footpaths across Auckland. This continues the renewal programme that has been carried out for the past three years

there will be $46 million invested in works to improve the safety of the city’s roads and a further $33 million for school safety initiatives; this is in addition to the $458 million in ongoing renewals and improvements to the city’s road network

community centres, halls and other facilities are tailored to the local community’s needs through $13 million of renewals and redevelopments across the city

public conveniences are accessible and of high quality with $17 million of improvements, in particular at Blockhouse Bay and Captain Springs Reserve

the Auckland Town Hall and the Aotea Centre will be refurbished, with $89 million allocated to preserve them as the region’s premier convention, performing arts and entertainment facilities.

Other initiatives The council plays a key role in enabling and regulating development in the city. The organisation’s urban design group reviews and recommends capital investment to ensure that any development contributes to a high-quality urban environment. Significant resource consents are also reviewed by the Urban Design Panel. Improving our customer service so that you have consistently high-quality experiences when you deal with the council is a high priority for the organisation. One of the specific ways we are doing this is through improvements to our consenting, licensing, and property information services.

Part 1: Executive summary What’s happening in your area Auckland City Council’s 10-year Plan 2009-2019 14 What’s happening in your area Citywide As well as day-to-day services already provided by the council (eg, rubbish and recycling collections, stormwater provision, road maintenance, library services and cleaning streets and public toilets), over the next few years we will be creating many new assets and renewing existing assets across the city. The services provided by these assets will benefit all Auckland residents no matter where they live, as well as people living in other parts of the region.

Key projects over the next 10 years are discussed in more detail elsewhere in this document and include the Wynyard Quarter and Queens Wharf developments, the Marine Events Centre, the development of Auckland Art Gallery, Q Theatre and the redevelopment of Aotea Square, the city’s civic and cultural heart.

The council owns, maintains and upgrades a range of citywide and regional facilities such as Auckland Zoo, Central City Library and Westhaven Marina. It also contributes to the development of regional facilities which it does not own such as Auckland War Memorial Museum and Motat. Many of these facilities are discussed elsewhere in this plan. To ensure that we continue to meet the city’s needs, a large portion of our budget is also allocated to taking care of our buildings (halls, libraries, and community and recreation centres), facilities (swimming pools, sports fields and library collections) and heritage sites such as the volcanic cones.

Auckland City Council owns or supports 19 community centres, runs 29 community halls, owns two community offices, and has 17 public libraries and one mobile library. Each ward is allocated funding for small local area improvements, where the community can apply for funding for projects which will improve their local area. Hobson All Auckland residents gain benefits from the council’s many citywide initiatives, services and assets (see Citywide). Specific initiatives for Hobson residents are described below.

In 2006, the central Hobson ward was home to 18 per cent (74,400) of the city’s residents and Hobson has experienced the strongest population growth (24 per cent) of all wards in the preceding five years. The ward is made up of the CBD, Parnell, Newmarket and Remuera business and shopping centres. The council works with the Mainstreet organisations in these areas to help promote events and create dynamic town centres that support their local communities. The council is in partnership with The University of Auckland and AUT University to build on opportunities arising from having two of the country’s most important universities in the economic heart of the city.

The Learning Quarter plan aims to establish a distinctive urban hub of learning, teaching and research in Auckland city and raise the profile of the area in the city, region, country and the world.

The council also supports a range of large and small community events throughout the year in this ward, including the Farmers Santa Parade, Diwali Festival of Lights, and Coca-Cola Christmas in the Park held in the Auckland Domain. The council will continue to maintain and upgrade the ward’s community centres and halls, as well as the Parnell Baths and Tepid Baths. The council will also continue with its street and lane upgrade programme. Upgrades to the central area’s open spaces will include St Patrick’s Square, Aotea Square, improving the paving in Albert Park and developing open spaces in Wynyard Quarter.

We will be looking at ways to improve access into the CBD, as well as implementing cycling and pedestrian improvements as part of the university travel plan. We are also working with large businesses in the CBD on travel planning for their staff. Another key transport project is improving the CBD airport link along Manukau Road.